States seek to make fossil fuel firms pay for climate damages

Illinois is set to introduce a bill requiring fossil fuel companies to contribute to a climate superfund amid rising costs from global warming. This effort joins a wave of similar legislation in other states, driven by advocates pushing for polluters to cover expenses like flooding and heat waves. New York and Vermont have already enacted such laws, despite opposition from industry and the federal government.

Illinois lawmakers are preparing to introduce a climate change superfund bill in the state legislature, aiming to hold fossil fuel companies accountable for the financial burdens of global warming. The proposal, led by State Rep. Robyn Gabel in the House and State Sen. Graciela Guzmán in the Senate, targets costs such as rising home insurance premiums, utility bills, health expenses, and damages from extreme weather events like flooding and heat waves in the state.

Gabel, an Evanston Democrat, emphasized the need for responsibility: “The costs with climate change are going to be extravagant, and it’s going to end up on the backs of the taxpayers, and the oil companies continue to walk away with huge profits. Polluting companies should be responsible for the damage they cause.” Guzmán added that the bill would establish “a fairer standard for who pays when climate damage hits our towns and neighborhoods.”

This initiative is part of a broader national movement. Advocates rallied in Chicago on Thursday as part of the “Make Polluters Pay” campaign, with events in Connecticut, Colorado, California, New Jersey, and Maine. Rhode Island introduced a similar bill this month, while Washington, DC, announced a study on climate impacts and potential compensation. In Maine, a superfund bill advanced from committee to a full Senate vote on Wednesday.

New York and Vermont have already passed climate superfund laws, modeled after the 1980 Superfund act that requires polluters to clean up toxic sites. Public support is strong, with 71% of likely voters favoring oil and gas companies contributing to climate damages, according to Data for Progress and Fossil Free Media.

However, the measures face resistance. The Trump administration and fossil fuel industry have launched legal challenges against the New York and Vermont laws, with the Department of Justice labeling them “burdensome and ideologically motivated.” The American Petroleum Institute lists fighting such legislation among its 2026 priorities, arguing it would “bypass Congress and threaten affordability.”

Gina Ramirez of the Natural Resources Defense Council, whose Chicago home suffered flood damage not covered by insurance, sees the bill as essential: “It only makes sense as our bills get higher and we pay the price for climate change, that polluters, the oil and gas industry, pay their fair share as well.” Cassidy DiPaola of Fossil Free Media described the push as a “David versus Goliath fight” but affirmed advocates' resolve, noting recent disasters like Hurricanes Helene and Milton have heightened public demand for accountability.

In 2025, the US saw 23 billion-dollar weather disasters costing $115 billion, contributing to over $3.1 trillion in damages since 1980.

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Illustration of Americans showing reluctance for personal carbon fees but support for taxing corporate emissions, based on recent polls.
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Polls show limited appetite for personal carbon fees as more Americans favor charging companies

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Americans’ willingness to pay a personal carbon fee remains modest: an AP-NORC/EPIC survey in 2023 found 38% would pay $1 per month, down from 52% in 2021, while a 2024 follow-up shows continued reluctance at higher amounts and broader support for taxing corporate emissions.

Climate risks, exemplified by recent Los Angeles wildfires, are destabilizing real estate markets, straining public budgets, and eroding household wealth. Insurers' retreat from high-risk areas like California, Florida, and the Midwest highlights systemic financial pressures. Meanwhile, investments in clean energy technologies continue to surge, offering pathways to resilience.

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A recent National Bureau of Economic Research report reveals that American families face $400 to $900 in yearly climate-related expenses. These costs stem from extreme weather events impacting insurance, energy, taxes, and health. The study highlights rising burdens, especially in disaster-prone areas.

New York City’s subway—much of it more than a century old and largely underground—is increasingly exposed to heavier downpours and hotter summer conditions. Recent flooding has repeatedly disrupted service, prompting officials to accelerate climate-resilience plans that transit leaders say will require billions of dollars in long-term investment.

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The Environmental Protection Agency under President Trump has stopped assigning dollar values to certain public-health benefits—such as fewer premature deaths and illnesses—from changes in fine particle (PM2.5) and ozone pollution, citing uncertainty in the economic estimates. Public-health and legal experts say the shift could make it easier for the agency to justify rolling back air pollution protections.

A report promoted by the conservative-leaning nonprofit Power the Future said natural gas, coal and nuclear plants generated the bulk of U.S. electricity during Winter Storm Fern, while wind and solar output fell during the storm’s coldest, darkest hours. The findings circulated amid the Trump administration’s renewed pushback on wind power, including a December 2025 move to suspend five offshore wind projects on the East Coast.

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A UN study reveals that for every dollar invested in protecting nature, the world spends 30 on destroying it. The report highlights massive negative financial flows in 2023 and calls for redirecting investments toward nature-based solutions. Experts urge an urgent transition to halt environmental degradation.

 

 

 

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